Biofuel maker ZeaChem adds $5 million

Money continues to roll in for Lakewood-based biofuel producer ZeaChem Inc. The company recently raised $5 million in equity financing, bringing its total venture capital investment to $64 million, according to a regulatory filing and a company spokesman.

ZeaChem spokesman James Cortese said today that the company “is moving forward with its business strategy, which includes additional investments such as this.”

ZeaChem has developed technology to turn wood and other materials into ethanol, using a process it says produces high yields and lower carbon dioxide emissions, at a lower cost than other methods. It plans to open a biorefinery in Boardman, Ore., next month.

According to Sustainable Business Oregon, the new plant will use “technology based on bacteria found in the stomach of termites to convert leftover plant materials from tree, row-crop and wheat farms into fuel at a cash cost of about 96 cents per gallon.”

The new investment comes after a $19 million venture capital investment announced last month and $40 million secured in earlier rounds. Backers include Birchmere Ventures, Firelake Capital and Globespan Capital Partners. In September, ZeaChem said it was part of a consortium of companies and universities that received a $40 million grant from the U.S. Department of Agriculture.

ZeaChem also operates a research and development laboratory facility in Menlo Park, Calif. Last month the company announced that former BP America Inc. chairman and chief executive Ross Pillari has joined its board of directors.

Provided the claims prove true, this is a great example of the ingenuity found in the US. One must especially appreciate this technology in that it is based on market economics versus politically driven subsidies for a miserable boondoggle like corn based ethanol.

Cutspending

Looks like another taxpayer subsidized boondoggle.

http://profiles.yahoo.com/u/BCF4YW4MLEZ3DXDB7TE6Z6JBWU RichardB

Does this sound just a little far fetched to you? Termite stomach bacteria? Will the termites form a union? After November, 2012, this type of nonsense will go away.

LGothe

I imagine a lot of science may sound far fetched to a nonscientist. Curing infection from mold (penicillin)? Treating diabetes by injecting human DNA into bacteria (insulin)? Hopefully not all that you think sounds like nonsense will go away next year.

http://pulse.yahoo.com/_HUSZ3DT3I3U4FUVOXMI227I23M Mike

You are so stupid it hurts. Just see Dan Quayle and how he opened the door for the FDA de-regualtion of GMO crops. Please stop trying to politicize everything when you guys are the ones doing all the harm.

David joined The Denver Post in 1999, his second go-round in the Mile High City. Since then he’s covered a variety of topics – from human services to consumer affairs – most always with an investigative bent. Currently he does investigations and banking.